OKEx

The Most Trusted Digital Asset Exchange

Description

Currently headquartered in Hong Kong, OKEx was founded in 2014 as a digital assets exchange. It has maintained a top 3 position on the leaderboard of exchanges by trading volume, often rated as the 2nd most liquid exchange. Its products range from standard crypto pairs, fiat-token trading, leveraged futures trading, and a crypto index tracker.

Vision

OKEx endeavors to expand its global presence by establishing an office in Malta, tsking advantage of the blockchain-friendly jurisdiction's offerings, using its partnership with MSX to accelerate development of security token trading capabilities in order to capture early trading activity in the infant industry.

Team

CEO Star Xu is the co-founder of OKCoin (parent operate of OKEx).
CEO of OKEx and CFO of OKCoin Chris Lee oversaw OKEx's growth from 2017-2018. Towards the end of this period, OKEx surpassed Binance in early may in terms of daily trading volume.
CRO Tim Byun possess decades of experience in Risk and Compliance. He has served as the Chief Risk Officer at Bitpay for 2 years, the head of Anti-Money Laundering/Anti-Terrorist Financing team of Visa for 5 years, and also the Examining Manager of the Unites States Federal Reserve for over 16 years.
Head of Operations Andy Cheung was formerly the CEO of Groupon Hong Kong, initially responsible for driving development of various discount packages before becoming CEO. He has served as Head of Operations for OKEx as of 2017.

Business Model

Traders and investors who transact on the OKEx trading venue will pay a small percentage or fixed transaction fee, which OKEx will recognize as revenue. Its OK06ETT index tracker charges a 1% service fee to holders.

Problem

Initial security token offerings are challenging from a technological and regulatory perspective in and of themselves, but without liquidity on the secondary markets, security tokens lose much of their advantage against traditional private equity.

Solution

As of July 19, 2018, OKEx and the Malta Stock Exchange (MSX) have signed an Memorandum of Understanding (MoU) to jointly developed a security token trading platform, to be known as OKMSX. According to OKEx's press release, "both parties will endeavour to finalize a Joint Venture..."

Token Economics

Investors

Competition

The OKMSX joint venture will face heavy competition from security token exchanges and partnerships between crypto exchanges and national stock exchanges in blockchain-friendly jurisdictions such as Switzerland and Singapore.

Market Opportunity

Considering the nascent stage of STO, early liquidity for security tokens may be limited, but not insignificant. According to the World Federation of Exchanges database, 2017 saw a total of $77.566 trillion dollars in equity market turnover globally.
If the assumption is made that any equity issuer can also be a security token issuer, and if it is assumed that private companies will also launch STO, the total market opportunity for exchanges may exceed $77.566 trillion dollars in turnover per year.

Route-to-Market

OKEx has a captive user base of crypto traders that account for daily volumes in the billions of dollars. The crypto bear market that summer 2018 issued in is shifting market sentiment away from utility tokens, which many perceive to be an unsustainable industry in the long term.
Newfound interest is taking hold around the advent of security tokens now that industry critical infrastructure is closer to launch. OKEx will likely market security token trading services directly to its current user base. Its partnership with Malta Stock Exchange is intended to accelerate deployment of its security token trading services, which seek to capture a significant portion of early trading activity in this infant industry.

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Security Token Network is not a registered broker-dealer or investment advisor in any jurisdiction. You cannot invest in any financial product or buy tokens through our website. Nothing published on Security Token Network should be constituted as investment advice or an endorsement of any project. All investments entail risk and you should seek professional investment advice from a licensed financial advisor before making any investment.

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